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86
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Registered: ‎06-07-2013
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Business banking account/ lender check?

I have a smll business and I am thinking about applying for a busines LOC from a company called Horizon. They wanted the standard information, plus three months of our business account bank statements. My question on that is that if I supply them with those statements, would the have access or be able to get information from my bank about the company or the account? I want to protect our privacy and was just curious if the bank would disclose any of that information without our direct consent. Thanks,

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myjourney
Posts: 25,594
Registered: ‎02-07-2013
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Re: Business banking account/ lender check?


86 wrote:

I have a smll business and I am thinking about applying for a busines LOC from a company called Horizon. They wanted the standard information, plus three months of our business account bank statements. My question on that is that if I supply them with those statements, would the have access or be able to get information from my bank about the company or the account? I want to protect our privacy and was just curious if the bank would disclose any of that information without our direct consent. Thanks,


No

In my honest opinion they have no authorization to access banking info but simply want to see how much money is going through your accounts as in bottom line profitable or not (financial risk) for them.

 

Others will chime in to verify but I'm fairly certain the only banking info that can be obtained is yes you have an account that's it.

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scenery_guy
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Re: Business banking account/ lender check?

No, if you supply them 3 months of paper statements the info they get is what's on the statements - nothing more. Your bank will not release more information without your approval. With that said there is a lot of info on that statement as it lays out your income (deposits) and expenditures (checks or other payments).

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sccredit
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Registered: ‎09-14-2012
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Re: Business banking account/ lender check?

Horizon is not a full line of credit, they are a Merchant Cash Advance companmy, they are looking to see how much you have in monthly credit card transactions.

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Creditaddict
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Re: Business banking account/ lender check?


sccredit wrote:

Horizon is not a full line of credit, they are a Merchant Cash Advance companmy, they are looking to see how much you have in monthly credit card transactions.


DONT DO IT!

Cash Advance Line of Credit... 

If you need emergency line of credit... get 2 PayPal accounts and a Bill Me Later account and you can cash advance yourself a payment to the other paypal account and it will only cost you the paypal fee and regular interest until paid off!

who do you bank with? They don't have a line of credit or overdraft line of credit you could access instead?

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sccredit
Posts: 815
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Re: Business banking account/ lender check?


Creditaddict wrote:

sccredit wrote:

Horizon is not a full line of credit, they are a Merchant Cash Advance companmy, they are looking to see how much you have in monthly credit card transactions.


DONT DO IT!

Cash Advance Line of Credit... 

If you need emergency line of credit... get 2 PayPal accounts and a Bill Me Later account and you can cash advance yourself a payment to the other paypal account and it will only cost you the paypal fee and regular interest until paid off!

who do you bank with? They don't have a line of credit or overdraft line of credit you could access instead?


Merchant Cash Advance is different.  A Merchant Cash Advance is basically a loan against a company's credit card receipts.  Say your company does $150k a month a CC business.  They would advance something like $100k against that and then take 25% of ACH deppsits over the next 4 months to pay it back.  Interest rates are in the 15%-20% range though, similar to most asset based lending type facility.

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